The insolvency professional, appointed by the National Company Law Tribunal (NCLT), has called for expression of interest for submission of resolution plans for Inasra Technologies Private Ltd, which runs the hotel and home stay aggregator business under the brand Stayzilla.
“The applicants should have a net worth of ₹50 crore or more as of March 31, 2018 and the ability to infuse minimum of ₹20 crore cash in the company,” according to the notice inviting for expression of interest.
Under the insolvency proceedings, a 270 day timeframe is given for finding resolution plan for the company. As per the NCLT order, the resolution period for Inasra ends on July 30, 2018.
If no resolution plan is arrived at, the company goes into liquidation post the end of the 270 period.
Stayzilla would be one of the first cases of start-ups being tested under the insolvency and bankruptcy code.
Experts say it would be interesting to see how the assets of Stayzilla are valued, as it is only an aggregator which may not have physical assets of any worth other than intellectual property.
Last year, Stayzilla’s payment dispute with one of its vendor Jigsaw Solutions took centre stage, after the company announced closure of operations. Post that, based on a complaint from Jigsaw, Stayzilla’s co-founder Yogendra Vasupal was arrested for cheating and later released on bail.
Jigsaw had filed insolvency proceedings against Inasra for non-payment of dues of ₹1.69 crore. In September last year, the Chennai bench of the NCLT had ordered the initiation of corporate insolvency resolution process against Inasra.
Vasupal moved Supreme Court against the insolvency proceedings order and his appeal was dismissed.
Karthigeyan Srinivasan, the insolvency professional has now invited expression of interest for submission of resolution plans for Inasra by May 16.
